Align and Thrive: The Importance of Organizational Alignment and Agility

Align and Thrive: The Importance of Organizational Alignment and Agility

Introduction: The Need for Alignment in Agile Growth Companies

During a recent conversation with a fellow professional, the topic of organizational alignment arose. For a company to grow and adapt, it must be aligned, with all activities reinforcing its objectives. Alignment begins with the CORE – Core Values, Core Purpose, Core Customer, Brand Promise, and Profit/X, and these elements form the foundation upon which everything else is built.

Building Strategy Around Your Core

Once the CORE is established, you can develop a strategy that includes your Flywheel, BHAG, 3HAG, and 13-Week Sprints. The strategy should be based on the CORE without contradicting any of its elements. With a solid strategy, execution then focuses on achieving the targets set out in the strategy.

The Pitfalls of Misaligned Goals

Many companies set Core Values, a five-year plan, and annual goals but fail to align these with their CORE. This misalignment can result in pursuing revenue at the expense of profitability or prioritizing profit to the detriment of essential investments in people, processes, and equipment. Such scenarios are common in Corporate America and often wrongly attributed to short-termism.

The Power of Alignment and Agility

Alignment and agility are crucial for sustainable growth. When a company is aligned, its activities reinforce its Flywheel, target Core Customers, meet customer needs, deliver products and services efficiently, fulfill the Brand Promise, and achieve the Profit/X goal.

Agility enables an organization to respond effectively to a changing world. In an ever-changing environment, decision-making must be pushed to where the information is. Proper decision-making can only happen when the decision-maker knows the organizational intent (Strategy) and the framework for making that decision (CORES).

Conclusion: Aligning Your Organization for Success

To achieve the growth and success you seek, identify your CORES and develop a strategy accordingly. Ensure that everything in your organization aligns with these CORES, and you will be well on your way to thriving in an ever-changing business landscape.

Copyright (c) Marc A. Borrelli 2023

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Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder’s Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and leaders like Mohammed bin Salman are enabled by the professional service providers that help them. As I reflected on this and Browder’s allegations in his book against John Moscow et al., I had to think, why do these lawyers, bankers, accountants, etc., work for these characters? They know the abuses that their clients commit but are willing to overlook them because their clients pay enormous sums. We saw what Paul Manafort earned helping Russia in Ukraine and Jared Kushner’s recent investment from MBS, so money is the driver. However, money is a lousy core value.

Now don’t get me wrong, I would like to earn a lot of money, but I am not willing to sacrifice my core values. If money, or some proxy like revenue or profit, is your core value, you can have no other core values. Money as the core value overrides any additional core values you may claim and justifies any behavior because the behavior is driving money.

Issues with Money as a Value

So if money is the core value, then the firm attracts those who believe in money as a core value; however, that can cause other issues. For example:

  • Loyalty to the firm. If money is the core value, there is no loyalty to the firm as they will move for more money as that is their value. Also, they will do things that can hurt the firm if it brings in more revenue. Here are some examples: Arthur Andersen and Enron, Perdue Pharma and the opioid crises, Boeing 737 Max, and McKinsey’s recent scandals.
  • Loyalty to clients. Again there can be no objection to doing something that harms a client if it makes the firm more money as that is the driver. Bill Browder’s book gave a classic example of this with the behavior of John Moscow and Baker & Hostetler. If my research backs up Browder’s claims, I would never recommend Baker & Hostetler to anyone I know and any attorney there is a damaged product in my book.
  • Loyalty to colleagues. There is none because making money is all-important, so why sacrifice money to help a colleague?

Now, the scandals above made many a lot of money. If money is your driver, then great. But your legacy is what you did for others, and that is how you are remembered once you’re dead. I would not want people to say, “He was responsible for the death and damage of many.” If that is how you are remembered, many will revile you in time, and your family may start to distance themselves from you. I ran into a high school friend several years ago and mentioned I had met her father after his release from prison. She was so embarrassed she walked away and never spoke to me again. So sad.

As I reflect on all the people I have met in my career, I would say that lawyers are the most unhappy and wish to be doing something else. Now that is not all lawyers, just more lawyers than others. I think that is because many law firms have no culture and will act for any paying client. If your client is against your values, you have sacrificed them for money, which leads to unhappiness because, as we have all heard, “Money doesn’t buy happiness.”

Many of the people involved in the above are on the redemption trail, e.g., Andy Fastow from Enron. But, when you look at him speaking and think of how many people’s lives he knowingly damaged, I have to ask, does going on the speaking circuit redeem him? To me, No.

Culture is Critical.

As discussed earlier, Boeing sacrificed decades of industry safety leadership for profit. The Tory party, today, is sacrificing all its value for power. Once you go down that road, your reputation takes a very long time to return and often more than a lifetime. So it is critical to define your core values. I recommend that you determine your core values and define the expected corporate behaviors that your values prescribe. Then stick to them above all else. As Jim Collins said, “You would sacrifice profit rather than your core values.” Also, when hiring, look at where a candidate has come from, and that firm reflects your core values. It is easier to teach a skill than new values.

As you reflect on decisions, always think of your “elder” self looking back at the end of life and ask, is that how I want to be remembered?

(c) Copyright 2022, Marc A. Borrelli

 

 

 

 

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I recently watched “Downfall: The Case Against Boeing,” a documentary about Boeing’s 737 Max issues, which exposed the company’s sacrifice of safety for financial performance. Over 300 lives were lost due to Boeing’s negligence, as they calculated the odds of fatalities to be small enough to ignore while working on a solution. Even after the Lion Air and Ethiopian crashes, Boeing blamed the pilots and their training, resulting in a tarnished reputation that will take years to rebuild.

Boeing’s shift in focus from its core values of safety and engineering to prioritizing share price and financial performance was a grave mistake. The company went to great lengths to hide the MCAS system from pilots and regulators, avoiding additional certification requirements. The bold spirit of innovation, epitomized by Tex Johnson’s 707 barrel roll in 1955, seemed long gone. This misguided focus led to a drop in Boeing’s share price, while competitor Airbus’ share price experienced a 34% increase.

Boeing’s actions also damaged the FAA’s reputation worldwide, as countries no longer trust the FAA’s judgment. This loss of credibility is a heavy price to pay for prioritizing profit over core values. Companies must remember that profits result from upholding core values and good strategy and systems, and profits should not be the driving force behind the strategy.

The aftermath of the 737 MAX crashes revealed a concerning lack of accountability for top executives. When Dennis Muilenburg resigned as CEO and board director, he received $62.2m in stock and pension awards, highlighting the disparity in consequences for executives compared to others in the company.

In conclusion, Boeing’s downfall serves as a reminder of the importance of maintaining core values and prioritizing safety over short-term financial gains. A company’s reputation and long-term success depend on upholding these values and learning from past mistakes.

 

(c) Copyright 2022, Marc A. Borrelli

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Resolutions, Here We Go Again.

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Reflecting on 2021 Resolutions: A Personal Scorecard and Adjustments for 2022

Last year, I shared my New Year’s resolutions and the process I used to create them in a blog post titled “New Year’s Resolutions, Once More Unto the Breach.” I divided my resolutions into three categories: Business, Personal, and Relationships. Upon reflecting on my progress, I scored myself on a scale of 0 to 10 in each area:

  • Business: 5.65
  • Personal: 4.60
  • Relationships: 8.20

While my performance was not perfect, I still made some progress. I realized my long-term goals, or 3HAG, remained mostly unchanged, which meant my resolutions were still relevant for 2022.

Enhancing Resolution Success in 2022

To improve my success rate in 2022, I decided to implement the advice of social psychologist Wendy Wood, who emphasized the importance of tapping into the unconscious mind to facilitate change. Wendy, an expert on habits and the author of “Good Habits, Bad Habits: The Science of Making Positive Changes That Stick,” suggests that resolution success is less about willpower and more about persistence. She advises minimizing friction that prevents achieving goals and increasing friction for actions that hinder success.

Addressing Friction in Failed Resolutions

To illustrate how I applied Wendy’s approach, let’s examine three resolutions I struggled with last year and discuss how I can modify friction to increase the likelihood of success.

Have five coaching clients on annual contracts.

I fell short of this goal, but I did have several clients on shorter-term contracts. I discovered that my mindset was focused on selling annual contracts rather than addressing clients’ immediate needs, which led to positive outcomes and repeat business.

  • Friction to reduce: Shift my mindset from selling annual contracts to addressing clients’ problems.
  • Friction to increase: Develop a questionnaire to identify prospects’ most significant issues before proposing a solution or relationship.

Practice yoga three times a week.

I only practiced yoga three times throughout the year, which I attributed to insufficient time allocation.

  • Friction to reduce: Schedule yoga sessions in my calendar every Sunday for the week ahead, allowing for an hour and twenty minutes for each session and a shower afterward.
  • Friction to increase: Share my commitment and calendar with a friend to hold me accountable.

Develop a monthly calling plan for “old” friends.

My performance in this area was mediocre. I often forgot to call friends, so I needed to address the friction points.

  • Friction to reduce: Schedule a weekly calendar appointment to call a friend, including their name and phone number.
  • Friction to increase: Reach out on social media to inform friends about my intention to call and leave messages when they don’t answer, inviting them to call back.

I look forward to updating you on my progress next year and encourage you to examine your 2022 goals by considering how adjusting friction can help you achieve them. Feel free to share your resolutions with me if you’d like someone to hold you accountable or reach out if you’d like to discuss this further.

Copyright (c) 2022, Marc A. Borrelli

 

 

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You need to take an extended vacation. No, seriously, you do.

You need to take an extended vacation. No, seriously, you do.

Not only do you need a vacation, but it needs to be at least two weeks, and preferably longer. I have given many CEOs and business leaders this advice over the years, and I believe in it. 

Why a minimum of two weeks? Well, you need the first week to unwind and let work “go.” The second week, you truly relax, the tension of work and all its issues leave, but the brain continues to work in the background. After two weeks, I start to see the forest for the trees. The problems that were prominent in my life no longer are as relevant as I thought they were. Turning to my navigate sage power, I turn to my elder self to look back and see what is essential and what I should be focused on rather than that what has my attention.

Now I am unwinding

However, like the old saying, “Physician heal thyself,” I have failed to heed my advice until two weeks ago. I am now sitting in NE Spain, enjoying a quieter time and relaxing with good friends, food, and wine. To ensure my disconnection, I have adopted the following rules:

  • Limit email activity to 15 minutes a day.
  • Disconnect from Facebook (well, I effectively did that a couple of years ago) and all social media other than LinkedIn. 
  • Post to LinkedIn, but according to a plan, it takes about 5 minutes a day.
  • Avoid the news and television.
  • Reading lots but no business books.
  • At least 30 minutes of meditation a day.
  • Walk at least 5 miles a day.
  • Swim as often as possible in the ocean.

These rules are not complicated, but we are so conditioned to remain connected and tuned in that it takes effort to disconnect.

As I relax, I remember that I, like my clients, need to take an extended vacation to recover from the low-level stress of COVID over the last eighteen months. COVID has taken a toll on me, and more than I realized. While I have been active during COVID, I recognized that I have been reactive more than proactive. Now, not only do I want to change this behavior, but I am framing it around what I want to accomplish in Q4 2021 and 2022. 

The benefits for you

Sitting in quiet squares or overlooking the ocean, the focus has gotten more precise, the planning more effortless, and many things are just getting crossed off the list or deleted. Also, I am finding that I can better help my clients as my mind declutters.

I am focusing on achieving my long-term goals and not get distracted by what is in front of me. By refocusing, I realized much of what I was doing was not relevant to the long-term goals and thus a distraction.

Now, I can’t say that everything will be done and perfect at the end of this. But I will have more energy, be much better mentally to deal with what lies ahead, and cope with winter.

The benefit for your business.

Taking a minimum of two weeks off provides additional benefits too. You can see how your business operates without you. You will have answers to the following questions:

  • Does my leadership team function well in my absence? Are they aligned, and Is there conflict?
  • Do my team and company understand its mission, strategy, and purpose?
  • Does the organization continue to hit its KPIs for the quarter?
  • Do my clients need to deal with me, or can my team handle the clients’ needs?

I have asked many clients how their business would perform if they were unavailable for three to six months, and the answer is usually “Fine.” However, if you cannot go away for two weeks and disconnect, is that true?

If your business cannot operate without you, you don’t have a business; you have a job! To successfully leave your business, you have to make yourself redundant. Only by creating your own redundancy can you sell it, pass it on, or assume a non-executive position. I realize for many business owners, this isn’t easy, as their identity is tied up in their business, but to create a more significant legacy, ensure it operates without you.

So when did you last leave?

As I said earlier, with COVID, I hadn’t taken a vacation in 18+ months. Not only that, but with WFH, I had, like many others, increased the amount of time I was working which typically included at least one full day of every weekend. All of this took a toll.

So when did you last take a “proper” vacation for at least two weeks? Did you disconnect, or were you on calls and emails all the time, putting out fires and saving the company? The stress of the last eighteen months has taken a mental toll on all of us. If you don’t take a break and let yourself recover, you will be ill-prepared for what is ahead. While none of us know what is ahead, we can be sure that labor, supplies, and demand will be unpredictable. 

COVID and its effects are not done. I feel like we’re just finished the first half, but there is another half to go, and the opposing team that emerges from the locker room has a new strategy.

If it has been a while since you took an extended vacation, take one now, you will be amazed at how much you and your business will benefit.

 

Copyright (c) 2021, Marc A. Borrelli

 

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